Madison Square Garden Entertainment Corp (MSGE) 2025 Q3 法說會逐字稿

Good morning. Thank you for standing by and welcome to the Madison Square Garden Entertainment Corp fiscal 2025 third-quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. I would now like to turn the call over to Ari Danes, Senior Vice President, Investor Relations and Treasury. Please go ahead.

早安.感謝您的支持，歡迎參加麥迪遜廣場花園娛樂公司 2025 財年第三季財報電話會議。此時，所有參與者都處於只聽模式。演講者發言後，將進行問答環節。現在我想將電話轉給投資者關係和財務部高級副總裁阿里·丹斯 (Ari Danes)。請繼續。

Thank you. Good morning and welcome to MSG Entertainment's fiscal 2025 third-quarter earnings conference call. On today's call, Lee Weinberg, our SVP Business and Financial Operations, will provide an update on the company's operations. David Collins, our EVP and Chief Financial Officer, will then review the company's financial results for the period. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the investor section of our corporate website. Please take note of the following.

謝謝。早安，歡迎參加 MSG Entertainment 2025 財年第三季財報電話會議。在今天的電話會議上，我們的業務和財務營運資深副總裁 Lee Weinberg 將介紹公司營運的最新情況。我們的執行副總裁兼財務長 David Collins 將回顧公司該期間的財務表現。在我們準備好發言之後，我們將開始提問。如果您沒有今天的收益報告副本，可以在我們公司網站的投資者部分找到。請注意以下事項。

Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties.

今天的討論可能包含《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述。任何此類前瞻性陳述均不保證未來的績效或結果，並涉及可能導致實際結果與前瞻性陳述中的結果有重大差異的風險和不確定性。有關風險和不確定性的討論，請參閱本公司向美國證券交易委員會提交的文件。

The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On pages 5 and 6 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or AOI, a non-GAAP financial measure. And with that, I'll now turn the call over to Lee.

本公司不承擔更新本次電話會議中可能討論的任何前瞻性陳述的義務。在今天的收益報告的第 5 頁和第 6 頁，我們提供了合併經營報表以及經營收入與調整後經營收入或 AOI（非 GAAP 財務指標）的對帳表。現在，我將把電話轉給李。

Thank you, Ari, and good morning, everyone. As we near the end of our fiscal year, I'm pleased to say that we continue to see strong consumer and corporate demand for our live entertainment offerings, which is reflected in today's results.

謝謝你，阿里，大家早安。隨著我們財政年度即將結束，我很高興地說，我們繼續看到消費者和企業對我們的現場娛樂產品的強勁需求，這反映在今天的業績中。

For the company's fiscal third quarter, we reported revenues of $242 million and adjusted operating income of $58 million, both representing solid growth on a year-over-year basis. This reflected our success in attracting a wide variety of special events, family shows, and marquee sports to our venues, robust ongoing demand for our premium hospitality offerings, and the conclusion of this year's record setting Christmas Spectacular run in January. And while our businesses experienced a year-over-year decline in the number of concerts at our venues this quarter, we remain on track to grow the overall number of bookings events this fiscal year. So putting it all together, I'm pleased to say that we continue to pace toward mid to high-single digit AOI growth this year.

該公司第三財季營收為 2.42 億美元，調整後營業收入為 5,800 萬美元，年比均穩健成長。這反映了我們成功地吸引了各種各樣的特別活動、家庭表演和大型體育賽事來到我們的場館，對我們的優質酒店服務的持續強勁需求，以及今年 1 月創紀錄的聖誕盛會的結束。儘管本季我們場館的音樂會數量較去年同期下降，但本財年我們的預訂活動總數仍有望成長。總而言之，我很高興地說，今年我們的 AOI 成長將繼續保持中高個位數的步伐。

In addition, we continue to deliver on one of our core capital allocation priorities, opportunistically returning capital to shareholders. We have repurchased approximately $40 million of our Class A common stock to date this fiscal year, including $15 million during the fiscal third quarter. David will share more details on our buyback activity shortly. Let's now take a look at operational highlights from the quarter.

此外，我們繼續履行我們的核心資本配置重點之一，即適時向股東返還資本。本財年迄今為止，我們已回購了約 4,000 萬美元的 A 類普通股，其中包括第三財季的 1,500 萬美元。David 很快就會分享有關我們回購活動的更多細節。現在讓我們來看看本季的營運亮點。

Across our portfolio of venues, we hosted more than 1.5 million guests across 195 events held during the quarter. As I mentioned earlier, these results reflect our success in attracting a wide variety of live entertainment and sporting events to our venues.

在我們的場館組合中，我們在本季度舉辦了 195 場活動，接待了超過 150 萬名賓客。正如我之前提到的，這些結果反映了我們成功地吸引了各種各樣的現場娛樂和體育賽事到我們的場館。

On the special events front, in February, we hosted Saturday Night Live's 50th Anniversary Special at Radio City Music Hall, which is also set to host the Tony Awards next month. In our family show category, we welcome back the Westminster Dog Show to the Garden for the first time since 2020, and we are pleased to say the event will return next year for its 150th anniversary. And in our sports bookings business, the Garden had a busy quarter of college basketball, including Saint John's, as well as a sold out WWE event.

在特別活動方面，二月份，我們在無線電城音樂廳舉辦了《週六夜現場》50週年特別活動，下個月托尼獎頒獎典禮也將於這裡舉行。在我們的家庭表演類別中，我們歡迎威斯敏斯特犬展自 2020 年以來首次重返花園，我們很高興地宣布，該活動將於明年回歸，慶祝其 150 週年。在我們的體育賽事預訂業務中，花園球場舉辦了包括聖約翰大學在內的多場大學籃球比賽，並且 WWE 賽事的門票全部售罄。

With respect to our concerts, we saw a year-over-year decrease in the number of events at our venues during the quarter. This was driven by a lower number of concerts at our theaters as well as at the Garden, which includes the absence of three Billy Joel performances that took place in the prior year quarter. From a demand standpoint, the majority of concerts at our venues continued to sell out during the quarter. In addition, food and beverage per caps at concerts at the Garden were up, while per caps at our theaters were essentially unchanged as compared to the prior year quarter. Turning to the Christmas Spectacular.

就我們的音樂會而言，本季我們場館舉辦的活動數量較去年同期有所減少。這是由於我們劇院和花園的音樂會數量減少所致，其中包括去年同期舉行的三場比利喬爾演出的取消。從需求角度來看，本季我們場館的大多數音樂會門票均已售罄。此外，花園音樂會的人均食品和飲料價格上漲，而我們劇院的人均價格與去年同期相比基本上沒有變化。轉向聖誕奇觀。

The show's 91st holiday season concluded in January with a record setting run, generating over $170 million in total revenues across 200 performances. 15 of those shows took place in the third quarter, with results reflecting year-over-year growth in crucial attendance and average ticket prices. We are currently on sale for the 2025 holiday season, and following this year's success, we believe the production is well positioned to deliver continued growth next fiscal year.

該節目的第 91 屆假期季節於 1 月落下帷幕，創下了紀錄，200 場演出的總收入超過 1.7 億美元。其中 15 場演出在第三季舉行，結果反映出關鍵觀眾人數和平均票價較去年同期成長。我們目前正在為 2025 年假期季節進行銷售，繼今年的成功之後，我們相信產量將很好地在下一個財年繼續增長。

On the marketing partnerships and premium hospitality front, this year has been highlighted by several notable sponsorship announcements, which, most recently, included a multi-year renewal with Pepsi. And in terms of premium hospitality, we have also seen strong new sales and renewal activity for suites at the Garden this year, including our now sold out, expanded event level club space. I would now like to introduce David Collins, our new EVP and Chief Financial Officer, to take you through our financial results.

在行銷合作和高端接待方面，今年的亮點是幾項引人注目的贊助公告，最近包括與百事可樂續簽多年贊助協議。在高端酒店服務方面，今年我們也看到花園套房的銷售和續約活動強勁，包括現已售罄的擴建活動級俱樂部空間。現在，我想介紹我們的新任執行副總裁兼財務長戴維‧柯林斯 (David Collins)，向大家介紹我們的財務表現。

Thanks, Lee, and good morning to everyone. I'd like to start by saying how pleased I am to be here today. MSG Entertainment is a world-class organization with an incredible portfolio of assets, and I really look forward to working with the team to achieve our long-term goals.

謝謝，李，大家早安。首先，我非常高興今天來到這裡。MSG娛樂是一家世界級的組織，擁有令人難以置信的資產組合，我非常期待與團隊合作實現我們的長期目標。

Now, let's review our fiscal third-quarter financial results. For the fiscal 2025 third quarter, we reported revenues of $242.5 million, an increase of $14.2 million or 6% as compared to the prior year quarter. The majority of this growth came from a $14 million or 10% increase in revenues from entertainment offerings. This primarily reflected growth in event-related revenues from other live entertainment and sporting events due to higher per event revenues and an increase in the number of events year over year. We also saw strong growth in suite license fee revenue, including amounts that are subject to the sharing of economics with MSG Sports.

現在，讓我們回顧一下我們的第三季財務業績。2025 財年第三季度，我們的營收為 2.425 億美元，與去年同期相比增加 1,420 萬美元，增幅為 6%。這一成長主要來自於娛樂產品收入的 1,400 萬美元或 10% 的成長。這主要反映了其他現場娛樂和體育賽事相關收入的成長，原因是每場賽事的收入增加，且賽事數量逐年增加。我們也看到套房授權費收入強勁成長，其中包括與 MSG Sports 共享經濟收益的金額。

In addition, revenues from our Christmas Spectacular production increased year over year, primarily due to higher per show ticket revenue and to a lesser extent, five additional performances in the quarter, both as compared to the prior year period. Per show revenues for the Christmas Spectacular were up by double-digit percentage year over year, mainly reflecting the increases in average attendance and ticket prices that Lee had mentioned earlier.

此外，我們的聖誕特別演出製作收入同比增長，主要由於每場演出的門票收入增加，以及本季度增加了五場演出（雖然程度較小），兩者均與去年同期相比。聖誕奇幻演出的每場演出收入比去年同期增長了兩位數，主要反映了李之前提到的平均上座率和票價的增長。

The overall increase in revenues from entertainment offerings was partially offset by a decrease in event-related revenues from concerts. This mainly reflected lower per concert revenues, primarily due to a mixed shift at the Garden from promoted events to rentals and a decrease in the number of concerts at our venues.

娛樂產品收入的整體成長被音樂會相關收入的減少部分抵消。這主要反映了每場音樂會收入的下降，主要是由於花園從推廣活動轉向租賃，以及我們場館的音樂會數量的減少。

Aside from revenues from entertainment offerings, we also saw a modest increase in food, beverage, and merchandise revenues for the quarter, which primarily reflected higher food and beverage sales at other live entertainment and sporting events, mostly offset by lower food and beverage sales at concerts. In addition, arena license fees and other leasing revenues were modestly lower year over year, primarily due to the Knicks and Rangers playing two fewer home games during the fiscal third quarter, mostly offset by higher other leasing revenues.

除了娛樂產品的收入外，我們還看到本季度食品、飲料和商品收入略有增長，這主要反映了其他現場娛樂和體育賽事的食品和飲料銷售額的增加，但大部分被音樂會食品和飲料銷售額的下降所抵消。此外，場館許可費和其他租賃收入比去年同期略有下降，主要原因是尼克隊和遊騎兵隊在第三財季的主場比賽減少了兩場，但這被其他租賃收入的增加所抵消。

Third quarter adjusted operating income of $57.9 million increased $19.3 million or 50% as compared to the prior year quarter. The increase in AOI primarily reflects the increase in revenues as well as lower direct operating expenses and selling, general and administrative expenses. I would also note that third quarter operating income results include a non-cash impairment charge of $9.7 million related to the company's operating lease at Two Penn Plaza. Now, turning to our balance sheet.

第三季調整後的營業收入為 5,790 萬美元，與去年同期相比增加了 1,930 萬美元，增幅為 50%。AOI 的成長主要反映了收入的增加以及直接營運費用和銷售、一般及管理費用的降低。我還要指出的是，第三季的營業收入結果包括與公司在 Two Penn Plaza 的經營租賃相關的 970 萬美元的非現金減損費用。現在，轉向我們的資產負債表。

As of March 31, we had approximately $89 million of unrestricted cash, and our debt balance was approximately $613 million. As Lee mentioned earlier, fiscal year-to-date, we have repurchased approximately 1.1 million shares of our Class A common stock for $40 million. That includes approximately 436,000 shares repurchased in March at an average price of $33.70 per share for approximately $15 million. Following these most recent repurchases, we now have $70 million remaining under our current buyback authorization. Going forward, we will continue to explore ways to opportunistically return capital to shareholders. With that, I will now turn the call back over to Ari.

截至 3 月 31 日，我們擁有約 8,900 萬美元的非限制現金，債務餘額約為 6.13 億美元。正如李之前提到的，本財年迄今為止，我們已以 4,000 萬美元回購了約 110 萬股 A​​ 類普通股。其中包括 3 月以平均每股 33.70 美元的價格回購的約 436,000 股，總價值約為 1,500 萬美元。經過最近的這些回購，我們現在的回購授權還剩下 7,000 萬美元。展望未來，我們將繼續探索向股東返還資本的機會。說完這些，我現在將電話轉回給阿里。

Thank you, David. Operator, can we open up the call for questions please?

謝謝你，大衛。接線員，我們可以打開電話詢問嗎？

(Operator Instructions)

（操作員指示）

David Karnovsky, JP Morgan.

摩根大通的戴維卡諾夫斯基。

Hey, thank you. So you reported AOI growths through the first nine months of the year at 13%, just with the guide maintaining that mid to high range, that does imply, I think, a decline in AOI in the fourth quarter? So wanted to see if you can walk through the puts and takes and the revenue and cost side for the fiscal 4. Thank you.

嘿，謝謝你。所以您報告今年前九個月的 AOI 成長率為 13%，而指南仍維持在中高水平，我認為這是否意味著第四季度 AOI 會下降？所以想看看您是否可以介紹一下財政 4 的投入和產出以及收入和成本方面。謝謝。

Sure, David, thanks for the question. This is David Collins. There are definitely several factors impacting our fourth quarter. First of all, the overall New York Arena concert market is down this quarter compared to last year. And at the Garden, we do have a tough comparison as last year included 3 Billy Joel shows, a number of first time headliners, and some late ads to the calendar. In addition, the Garden hosted 15 playoff games last year. This year, the Rangers did not qualify for the playoffs, while the Knicks have played 3 home playoff games so far.

當然，大衛，謝謝你的提問。我是大衛‧柯林斯。肯定有幾個因素影響著我們的第四季。首先，本季紐約體育館整體演唱會市場與去年同期相比有所下滑。在花園劇院，我們確實面臨著艱難的比較，因為去年有 3 場比利喬爾的演出、一些首次登台的領銜演員以及一些日曆上的遲到廣告。此外，花園球場去年還舉辦了 15 場季後賽。今年，遊騎兵隊沒有進入季後賽，而尼克隊迄今已經打了3場主場季後賽。

In terms of our theaters, we continue to pace ahead in concerts for the June quarter and expect a strong fourth quarter in special events with the Tony Awards at Radio City. We also continue to monitor how each individual event plays off as we've seen improving per event trend this year, and that could be another area of upside for us. So while there are a number of puts and takes as we close out the year, we remain on track for solid AOI growth for fiscal '25.

就我們的劇院而言，我們在六月季度的音樂會方面繼續保持領先，並預計在無線電城舉辦的托尼獎等特別活動將在第四季度表現強勁。我們也將繼續監控每項賽事的進展情況，因為我們看到今年每項賽事的趨勢都在改善，這可能是我們的另一個優勢領域。因此，儘管我們在年底時面臨許多損失和困難，但我們仍有望在 2025 財年實現穩健的 AOI 成長。

Cameron Manson-Perone, Morgan Stanley.

摩根士丹利的卡梅倫·曼森-佩羅內。

Hi, good morning. I just wanted to follow up on those concert bookings comments, particularly looking kind of beyond this year, as we look ahead to 2026, how is that? I know it's early and we're still a bit a ways from there, but how is the early booking activity shaping up looking ahead to next year? Thanks.

嗨，早安。我只是想跟進那些關於音樂會預訂的評論，特別是展望今年以後，當我們展望 2026 年時，情況如何？我知道現在還為時過早，距離那一天還有一段距離，但展望明年，早期預訂活動進展如何？謝謝。

Thanks, Cameron. This is Lee Weinberg. So for bookings pacing, we continue to see a number of positive signs for fiscal '26. At this stage, we have substantial visibility into the September quarter, and we're pacing ahead of both the Garden and our theaters. In fact, we're likely to set a new record for concerts in a single quarter at the Garden. Looking ahead to the December quarter, we're again pacing ahead at our theaters, but we're behind at the Garden. However, we are encouraged by the conversations we're having at the arena and we're actively narrowing that gap. So Glenn, we're pleased with how concert bookings are pacing so far for fiscal '26.

謝謝，卡梅倫。這是李溫伯格。因此，就預訂節奏而言，我們繼續看到 26 財年的許多積極跡象。目前，我們對 9 月季度有了相當清晰的了解，我們正在花園和劇院方面取得領先。事實上，我們很可能創下花園單季音樂會場次的新紀錄。展望 12 月季度，我們的影院再次取得進展，但花園影院卻落後了。然而，我們在競技場上的對話讓我們感到鼓舞，我們正在積極縮小差距。所以格倫，我們對 26 財年迄今為止的音樂會預訂情況感到滿意。

Peter Supino, Wolfe Research.

沃爾夫研究公司的彼得‧蘇皮諾 (Peter Supino)。

Thank you. This is Jack (inaudible) for Peter with two questions. First with the Penn Station project now in federal hands, have your conversations with public officials or private developers shifted? And do you believe the odds of selling the theater at MSG have increased the result? And then secondly, is there anything you can share on Christmas Spectacular exposure to domestic or international tourism? Thank you.

謝謝。我是傑克（聽不清楚），向彼得提起兩個問題。首先，賓州車站計畫現在已由聯邦政府負責，您與政府官員或私人開發商的對話是否有所改變？您是否認為麥迪遜廣場花園劇院的銷售幾率提高了業績？其次，可以分享一些關於聖誕盛會對於國內或國際旅遊業的影響嗎？謝謝。

Thanks. I'll take the Penn Station question first. So as invested members of our community, we remain committed to improving Penn Station and the surrounding area. And as we've said before, we and our guests are already seeing the benefits of some of the recent improvements that have taken place in the surrounding area of the Garden. As redevelopment of the area continues, we're committed to collaborating closely with all stakeholders. In terms of the theater , specifically, we'd always consider options that make strategic and financial sense but we have nothing further to report at this time.

謝謝。我先回答有關賓州車站的問題。因此，作為社區的投資成員，我們將繼續致力於改善賓州車站及其周邊地區。正如我們之前所說，我們和我們的客人已經看到了花園週邊地區最近進行的一些改進帶來的好處。隨著該地區重建的繼續，我們致力於與所有利益相關者密切合作。具體來說，就劇場而言，我們總是會考慮具有策略和財務意義的選擇，但目前我們還沒有進一步的報告。

And this is David Collins, Jack. I'll take your question on the international tourism at the across the company, so let's start with Christmas. We sold approximately 1.1 million tickets this past holiday season, and we estimate that international tourists accounted for approximately 10% of those tickets sold. In terms of concerts, let's look at the Garden, which is our most economically significant venue. We believe international tourists accounted for a low to mid-single digit percentage of concert ticket sales last year. So for both Christmas and concerts, we estimate that international ticket sales are the smallest geographic segment by far, with Canada and the UK being the main international feeder markets for both. So the vast majority of ticket sales for both businesses come from the US, both local residents and domestic tourists.

這是大衛柯林斯，傑克。我將回答您關於公司國際旅遊的問題，那麼我們就從聖誕節開始吧。上個假期我們售出了大約 110 萬張門票，我們估計國際遊客約佔售出門票的 10%。就音樂會而言，讓我們看看花園，它是我們最具經濟意義的場地。我們認為，去年國際遊客佔音樂會門票銷售額的比例僅為個位數的低到中百分比。因此，對於聖誕節和音樂會來說，我們估計國際門票銷售是迄今為止最小的地理部分，加拿大和英國是兩者的主要國際客源市場。因此，這兩家公司的門票收入絕大部分都來自美國，包括當地居民和國內遊客。

Stephen Laszczyk, Goldman Sachs.

高盛的史蒂芬‧拉什奇克 (Stephen Laszczyk)。

Hey, thanks for taking the questions. Just to follow up on Christmas Spectacular. I'd be curious if you could talk perhaps a little bit more about how you're thinking about the upcoming season for Christmas and what you see as the main drivers of that continued growth that you caught out in your prepared remarks. And then perhaps related to that, is there anything you can say around advanced ticket sales for Christmas this year or any maybe high-level comments you could give on demand just given the macro backdrop? Thank you.

嘿，謝謝你回答這些問題。只是為了跟進聖誕節盛會。我很好奇，您是否可以再多談談您對即將到來的聖誕節的看法，以及您認為推動聖誕節持續增長的主要因素是什麼，您在準備好的發言中也提到了這一點。然後也許與此相關，您能否談談今年聖誕節預售票的情況，或者考慮到宏觀背景，您可以根據需要提供任何高層評論？謝謝。

Thanks, Stephen. We see growth potential for next year's Christmas Spectacular through both more shows and higher average ticket yields. We're currently on sale with 211 shows for the 2025 season, which is up from 200 shows last year. And depending upon demand, we have the ability to further increase this year's show count beyond the current 211. We're also focused on improving our average ticket yield. We're still priced below comparable live entertainment options on Broadway, and we'll continue to manage our ticket inventory to maximize revenue.

謝謝，史蒂芬。我們看到明年的聖誕節活動將具有成長潛力，包括更多的演出和更高的平均票價收益。我們目前已售出 2025 年演出季的 211 場演出，比去年的 200 場有所增加。根據需求，我們有能力將今年的展會數量從目前的 211 場進一步增加。我們也致力於提高平均票價收益率。我們的定價仍然低於百老匯同類現場娛樂表演，我們將繼續管理我們的門票庫存，以實現收入最大化。

In terms of advanced ticket sales, we went on sale about a month earlier this year, which allows us to capture some incremental business for people that are already making Christmas plans. So while the earlier on sale impacts the year-over-year comparison, advanced ticket sales are currently pacing up over 60% in terms of gross ticket revenue. That reflects improvements across both volume and ticket yield, and it also reflects growth in both group sales and individual ticket sales. So while it's still early, we're confident in the growth opportunity for the '25 holiday season.

在預售票方面，我們今年提前了一個月開始銷售，這使我們能夠為已經制定聖誕節計劃的人們帶來一些增量業務。因此，雖然提前售票會影響年比數據，但就總票房收入而言，預售票目前的成長率超過 60%。這反映了票房和票房收益的提高，也反映了團體票銷售和個人票銷售的成長。因此，雖然現在還為時過早，但我們對 2025 年假期季節的成長機會充滿信心。

Operator, we have time for one last caller.

接線員，我們還有時間接聽最後一位來電。

Peter Henderson, Bank of America.

美國銀行的彼得‧亨德森。

Good good morning and thank you for taking the question. So I don't believe there are any like material capital projects in the horizon. Net leverage is now at 2.5 times and that should continue to naturally be lever over time due to organic growth. So I'm just wondering how we should think about capital returns moving forward and if you can provide any specificity sort of around how you think about opportunistically? Thank you.

早上好，感謝您回答這個問題。所以我不相信未來會出現任何類似的物質資本項目。淨槓桿率目前為 2.5 倍，並且由於有機增長，隨著時間的推移，這種槓桿率應該會繼續自然增長。所以我只是想知道我們應該如何看待未來的資本回報，以及您是否可以提供一些關於您如何看待機會主義的具體資訊？謝謝。

Sure, Peter, thanks. It's David Collins. As you've heard the company discussed before, we have three main priorities in terms of capital allocation.

當然，彼得，謝謝。我是大衛‧柯林斯。正如您之前聽到的公司討論的那樣，我們在資本配置方面有三個主要優先事項。

The first is ensuring that we continue to have a strong balance sheet. And as you mentioned, our net debt leverage was approximately 2.5 times at quarter end, and we should continue to deliver as the business grows. The second part of our policy is to ensure that we have flexibility to invest in our core business when we see compelling opportunities arise, and while we're still early stage in our budgeting process for fiscal '26, looking over the near-term horizon, there aren't any material capital projects the flag. Our third priority is to opportunistically return capital to our shareholders. We've now repurchased $40 million of stock this fiscal year, including $15 million this past quarter, and we have $70 million remaining under our our current buyback authorization. So going forward, we will continue to explore ways to opportunistically return capital to our shareholders.

首先是確保我們持續擁有強勁的資產負債表。正如您所說，我們的淨債務槓桿率在季度末約為 2.5 倍，隨著業務的成長，我們應該會繼續實現這一目標。我們政策的第二部分是確保當我們看到引人注目的機會時，我們可以靈活地投資於我們的核心業務，雖然我們仍處於 26 財年預算過程的早期階段，但從短期來看，還沒有任何重大資本項目。我們的第三個優先事項是抓住機會向股東返還資本。我們本財年已經回購了價值 4,000 萬美元的股票，其中包括上個季度的 1,500 萬美元，我們目前的回購授權還剩餘 7,000 萬美元。因此，展望未來，我們將繼續探索向股東返還資本的機會。

This concludes the question-and-answer session. I'll turn the call to Ari Danes for closing remarks.

問答環節到此結束。我將請阿里·丹尼斯 (Ari Danes) 致閉幕詞。

Thank you, all, for joining us. We look forward to speaking with you on our next earnings call. Have a good day.

謝謝大家加入我們。我們期待在下次收益電話會議上與您交談。祝你有美好的一天。

This concludes today's conference call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。